Contango Completes Acquisition of Silvertip Assets
February 01 2021 - 5:20PM
Contango Oil & Gas Company (NYSE American: MCF)
(“Contango” or the “Company”) today announced the successful
completion of its previously announced acquisition of assets
located in the Big Horn, Permian, and Powder River Basins (“Project
Silvertip”).
In accordance with the terms of the Purchase and
Sale Agreement (“PSA”), Contango acquired these assets for $58
million, subject to customary purchase price adjustments and an
August 1, 2020 effective date.
Wilkie S. Colyer, Jr., Contango’s Chief
Executive Officer, commented, “We are excited to announce the
closing of the Silvertip assets. Since signing the PSA, we have
only grown more excited by the producing reserves, employees, and
upside the Silvertip assets provide. We continue to be on the
lookout for additional acquisition opportunities like Silvertip in
this target rich environment.”
About Contango
Contango Oil & Gas Company is a Fort
Worth, Texas based, independent oil and natural gas company whose
business is to maximize production and cash flow from its offshore
properties in the shallow waters of the Gulf of Mexico and onshore
properties in Texas, Oklahoma, Wyoming, and Louisiana and, when
determined appropriate, to use that cash flow to explore, develop,
and increase production from its existing properties, to acquire
additional PDP-heavy crude oil and natural gas properties or to pay
down debt. Additional information is available on the Company’s
website at http://contango.com. Information on our website is not
part of this release.
This communication contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements are based on Contango’s current
expectations. The words and phrases “should”, “could”, “may”,
“will”, “believe”, “plan”, “intend”, “expect”, “potential”,
“possible”, “upside”, “project”, and similar expressions identify
forward-looking statements and express Contango’s expectations
about future events. All statements, other than statements of
historical facts, included in this communication that address
activities, events or developments that Contango expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond Contango’s
control. Consequently, actual future results could differ
materially from Contango’s expectations due to a number of factors,
including, but not limited to market conditions, industry
conditions, access to capital, the impact of COVID-19 pandemic, the
ability to realize the benefits of the asset acquisition,
actions by third parties (including investors), and other factors
which could affect Contango’s operations or financial results,
including those described in Contango’s Annual Report on Form 10-K
and other reports on file with the Securities and Exchange
Commission. Investors are cautioned that any forward-looking
statements are not guarantees of future performance and actual
results and developments may differ materially from the projections
in the forward-looking statements. Forward-looking statements speak
only as of the date they were made and are based on the estimates
and opinions of management at the time the statements are made.
Contango does not assume any obligation to update forward-looking
statements should circumstances or management’s estimates or
opinions change, except as required by law.
Contango Oil & Gas CompanyE. Joseph Grady,
713-236-7400Senior Vice President and Chief Financial
OfficerSource: Contango Oil & Gas Company
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